TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a third straight session on Friday, driven by lower commodity prices with investors skeptic over Ukraine and weak European markets, even as some soft U.S. consumer sentiment contributed to the weakness. Nonetheless, a bigger than expected jump in U.S. housing starts limited some of the market losses, ahead of the long weekend.

The mining, utilities, energy, consumer staples and information technology sub-indices trended lower, even as healthcare and real estate moved up.

The S&P/TSX Composite Index closed Friday at 14,514.74, down 74.15 points or 0.51 percent. The index scaled an intraday high of 14,588.89 and a low of 14,473.78.

On Thursday, the index ended lower hurt by drop in commodity prices and on some disappointing earnings and economic reports.

The Capped Healthcare Index gained 0.95 percent as Catamaran Corp. (CCT.TO) gained 0.74 percent and Valeant Pharmaceuticals International, Inc. (VRX.TO) slipped 1.71 percent.

Crude oil settled higher after some upbeat housing starts data from the U.S., although the gains were somewhat checked with an unexpected deterioration in consumer sentiment data.

The Energy Index dived 0.70 percent, with U.S. crude oil futures for June delivery gaining $0.52 or 0.5 percent to close at $102.02 a barrel a barrel Friday on the Nymex.

Among other energy stocks, Encana Corp. (ECA.TO) dropped 1.72 percent, while Baytex Energy Corp. (BTE.TO) slipped 1.31 percent. Husky Energy Inc. (HSE.TO) edged up 0.31 percent, Canadian Natural Resources Ltd. (CNQ.TO) shed 0.37 percent, and Suncor Energy Inc. (SU.TO) slipped 1.68 percent. Canadian Oil Sands Limited (COS.TO) dropped 0.04 percent.

The Global Gold Index dropped 1.12 percent, with gold futures for June delivery dropping $0.20 percent or to close at $1,293.40 an ounce Friday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) up 0.25 percent, Osisko Mining Corp. (OSK.TO) slipped 0.25 percent, Barrick Gold Corp. (ABX.TO) down 1.31 percent, and Agnico Eagle Mines Limited (AEM.TO) down 2.01 percent.

The Capped Materials Index surrendered 0.72 percent, although Potash Corp. of Saskatchewan Inc. (POT.TO) advanced 1.83 percent.

The Financial Index slipped 0.75 percent with the Toronto-Dominion Bank (TD.TO) down 1.17 percent, Royal Bank of Canada (RY.TO) down 0.57 percent, The Bank of Nova Scotia (BNS.TO) up 0.39 percent, and Bank of Montreal (BMO.TO) down 0.76 percent.

Canadian Imperial Bank of Commerce (CM.TO) dropped 0.52 percent, after recording a non-cash goodwill impairment charge of C$420 million relating to its investment in CIBC First Caribbean for the second quarter ending April 2014. Since the charge is a non-cash item, it will not affect the bank's ongoing operations or capital ratios.

The Diversified Metals & Mining Index shed 0.67 percent, with Lundin Mining Corp. (LUN.TO) down 2.61 percent, First Quantum Minerals Ltd. (FM.TO) up 3.90 percent, and Teck Resources Limited (TCK.B.TO) down 1.52 percent.

The Information Technology Index dropped 0.52 percent, with BlackBerry Limited (BB.TO) down 2.23 percent, Constellation Software Inc (CSU.TO) also down 2.23 percent, and Celestica Inc. (CLS.TO) down 0.40 percent.

Avigilon Corp. (AVO.TO) gained 0.98 percent.

The Capped Industrials Index inched up 0.01 percent, with Bombardier Inc. (BBD.B.TO) plummeting 5.35 percent and Air Canada (AC.B) gaining 0.16 percent.

In corporate news, Onex Corp. (OCX.TO) dropped 1.58 percent after reporting a first-quarter loss from continuing operations of $67 million or $0.60 per share, compared to a loss of $339 million or 2.98 per share in the previous year.

Among utilities stocks, Canadian Utilities Limited (CU.TO) dropped 1.86 percent, while Superior Plus Corp. (SPB.TO) shed 0.37 percent.

In its first decline in three months, foreign investors reduced their holdings of Canadian securities in March, with net sales of C$1.23 billion following a purchase of C$6.07 billion in February, according to Statistics Canada Friday.

In economic news from the U.S., housing starts surged by a better than expected 13.2 percent to an annual rate of 1.072 million in April from the revised March estimate of 947,000. Economists expected housing starts to climb to a rate of 980,000 from the 946,000 originally reported for the previous week.

Building permits, an indicator of future housing demand, also jumped 8.0 percent to an annual rate of 1.080 million in April from the revised March rate of 1.0 million.

Meanwhile, a report from Thomson Reuters and the University of Michigan showed an unexpected deterioration in U.S. consumer sentiment in May, with the index falling to 81.7 from 84.1 in the previous month. Economists expected the index to inch up to a reading of 84.5.